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the number of buy to let mortgages is up!

I keep on getting positive news which to me is signalling some kind of recovery.  I do not want to jinx it but you just can’t help notice the pointers.

 

Mortgage Introducer Magazine has announced there has been an increase of 58% of buy to let mortgages from December 2008.

 

Now this magazine actually talks to the lenders.  Not opinion of the mortgage market.  Actual conversations with lenders about what they are doing.

 

Now this is no surprise to me if you think about it from a lenders point of view.  They want to lend to:

 

Good people

 

On

 

Good properties

 

Good people means good credit scores.  They need to know that they have someone who will pay back the loan.  Someone with a good credit score is likely to.

 

Good properties mean if the case of default they are able to sell the property and get their money back QUICKLY. 

 

So with current prices where they are at, the likelihood of them going much lower is low and default unlikely to happen within 3 years of the person with good credit taking out the loan means only one thing:

 

HIGHER LOAN TO VALUES!

 

They are lending currently max 75% on low prices.  If they lent greater than 75% on today’s prices then their capital would have to be safe if they were to force a sale due to borrower default you would think wouldn’t you?

 

This is what one of the commentators from Mortgage Introducer had to say about higher LTVs:

 

“there is a feeling that we may see a positive shift in lending criteria with a particular focus on loan to value ratios. This is very positive and shows growing confidence in the Buy to Let market.”

 

So why am I telling you all this?  Well it is simple.  Higher LTVs mean higher property prices for buy to let properties.  Expect rapid growth once the first proper 80% LTV comes in and even more growth when 85% come in.  This is guaranteed.  The property market simply opens up when you have higher LTVs.

 

An 80% LTV is coming 1st July.

 

So my advice to you is lock in your position now!  If you already own – GREAT.  If you want to buy then get buying.  If you have no deposit funds NO WORRIES.  Just use our no money down structure to buy with very little cash (but a great credit line).

 

Anyway stuff like this is all explained in my Full package which is on sale now.

 

Ajay

 

 


Posted on: 11th May 2009




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